- Mcnight Company Managers Received The Following Incomplete Performance Report Complete The Performance Report Identif 1 (223.27 KiB) Viewed 58 times
- Mcnight Company Managers Received The Following Incomplete Performance Report Complete The Performance Report Identif 2 (229.06 KiB) Viewed 58 times
Review the results of the flexible budget performance report.The budget shows a favorable sale volume variance. This means thatmore units of the product were sold than expected. The budget alsoshows an unfavorable flexible budget variance for the variableexpenses. This indicates that the variable expenses were higherthan expected for this level of sales volume. Now determine whichdepartment deserves praise and which may be subject tocriticism.
Data table Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income McKnight Company Flexible Budget Performance Report For the Year Ended July 31, 2018 Flexible Actual Budget Results Variance 37,000 $ 214,000 83,000 131,000 110,000 21,000 $ (a) (b) (c) (d) (e) (f) Sales Volume Variance 37,000 8,000 F 214,000 $16,000 F 82,000 10,000 U 132,000 6,000 F 105,000 0 27,000 $ 6,000 F Flexible Budget Static Budget (g) (h) (i) (k) (1) I
Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income $ $ McKnight Pro Company Flexible Budget Performance Report For the Year Ended July 31, 2018 Actual Results 37,000 214,000 83,000 131,000 110,000 21,000 Flexible Budget Variance $ Flexible Budget 37,000 214,000 $ 82,000 132,000 105,000 27,000 $ Sales Volume Variance 8,000 F 16,000 F 10,000 U 6,000 F 0 6,000 F Static Budget